1. The Why and How of Legacy Giving: Making the Legacy Ask through Existing Relationships East Bay Community Foundation October 2, 2013 Greg Lassonde, CFRE Legacy Giving Specialist / Consultant greg@greglassonde.com / (510) 483-1502

2. Key Points Those with little or no experience in legacy giving can be successful Over time legacy asks will become the main source for qualified leads It’s probably your own fear that’s getting in the way of a legacy ask

3. Today’s Discussion Why How Random Questions

4. But First, What’s In a Name? “Us” –deferred giving –planned giving –gift planning –philanthropic planning “You” –LEGACY GIVING

5. Why Are Legacy Gifts Important?

6. Define Legacy Giving? To convey one's values through creation of a future gift to charity A foresighted action to strengthen a favorite cause

7. 7 Legacy Gifts Provide future support for charity (sometimes current) Are contributions: –by will –trust –other forms of written designation –life-income arrangements –endowment gifts

8. 8 Legacy Gifts Are created by: – Any individual – At any point in his / her life

9. Simple & Easy Via Beneficiary Form Savings account Checking account Stocks or bonds IRA or pension Life Insurance policy

10. More Complicated Types Will or living trust Charitable gift annuity Life income trust Many others

11. Tremendous Revenue Opportunity Seven out of ten Americans make gifts to charity during their lifetime. Yet fewer than one in ten creates a legacy gift. Why? Because most people have never been asked!

12. 12 Why Legacy Gifts Are Important Almost everyone is a prospect For most people it’s the largest gift they make It has the lowest cost of fundraising Legacy donors make larger annual gifts

13. 13 Why Legacy Gifts Are Important Only a small percentage of donors asked Wide variety of options, many easy to create Only revenue that increases during recession Staggering transfer of wealth in next 50 years

14. Why People Create Legacy Gifts Express appreciation to a charity that served them Support and sustain organizations they care about Reflects a cultural, ethical or religious value Meets a need of the community

15. Why People Create Legacy Gifts Memorialize themselves or a loved one Serves as an example to future generations Creates something of beauty Accomplishes planning and financial benefits

16. Common Obstacles to Starting a Program Uncertain why it’s important Subject matter perceived to be too difficult Concern it takes a lot of staff time Fear that it requires a large budget Misconception: only for the wealthy Unsure on obtain board / staff support

17. Why Haven’t You Started / Advanced Your Legacy Program 1 minute

18. What Does Your Organization Need To Build A Program? Understand why legacy giving is important Willingness to talk with others Commitment to celebrate legacy gifts and the individuals who create them

19. Organizational Readiness Long term commitment Staff turnover contingency Determine your market –Major donors=MINORITY –Smaller donors=MAJORITY Ask peer’s, “What’s working?”

20. Major Donor Myth Major donors=MINORITY Smaller donors=MAJORITY

21. Stakeholder Buy In Staff –Development –Finance –Administration Board –Officers –Committees

22. Budget Basic brochure Donor recognition

23. Case Statement For What –Endowment –Capital –Operating –Reserve –Blend Suggested “funds” How much / by when

24. Board Resolution Committee structure Ethics (Model Standards of Practice Vehicles permitted Gift uses

25. Launch Bequest Program Recognition society –Personal name / key word –Welcome letter, enrollment form, certificate –Annual event Promote designations –Insurance, retirement plan / IRA, checking, saving, stocks / bonds

26. Initial Qualified Lead Steps Prompt Response to Inquiries –General letter with handouts –Follow up phone call(s)

27. Legacy Status Definitions Supporter –One who helps your organization Prospect –Long-term supporter with a heart connection

28. Definitions Continued Suspect –Named prospects, individually referred, as someone to approach for a legacy ask Legacy Ask –The one-on-one question, “Would you consider making a legacy gift?”

29. Definitions Continued Qualified Lead –Raised hand and said, “Yes!” (marketing or legacy asks) Confirmed Gift –Committed to revocable gift; made irrevocable gift; previously unknown estate gift

30. Definitions Continued Legacy Group Member –Accepted invitation to join Stewardship –Active contact with confirmed gifts, at least annually, usually over decades

31. Who Are Prospects? Planned Giving Donors Legacy Giving Long term supporters w/ heart connection Among donors Smaller donors = MAJORITY Major donors = MINORITY Includes volunteers, community members

32. “Planned Giving” How Are Leads Qualified? Planned giving –Communications & Marketing

33. Print Direct Mail Response Form Newsletter / Annual Report Testimonial Mailing Poster Brochure Acknowledgment Insert Legacy Newsletter Others

34. Electronic Web Site E-Newsletter E-Blasts Social Media Others

35. Telemarketing For advanced programs In-house add-on to fundraising call Outsourced vendors available

36. Marketing / Communications What channels do you want to start with / expand?

37. “Legacy Giving” How Are Leads Qualified? Communications AND Legacy asks

38. Why Aren’t More Charities Making Legacy Asks? Some keep putting it off until...

40. The Legacy Ask “Would you consider … “ For “Yes” –“May I get back to you in “x” months / years if we haven’t heard from you before then?”

41. Why Aren’t More Charities Making Legacy Asks? Solicitation used only for current gifts Perceived to be too difficult Concern it takes a lot of staff time Fear of not knowing answers to questions Misconception it’s only for the wealthy Unsure how to create board / staff support

42. Why Aren’t You Making Legacy Asks Group of two One minute each

43. What Does Your Organization Need To Make Legacy Asks? Understand why it’s important Willingness to talk with others Ability to track moves (data base or spreadsheet)

44. What Staff Is Involved? Planned Giving –Planned giving officer, OR –Major gifts officer, OR –Development director, OR –Executive director (when no DoD) Legacy Giving –Staff and volunteers through relationships –Referrers through their relationships

45. Start with Staff Identify suspects Call / visit to make legacy ask Secure qualified leads Obtain gift commitments

46. What Do You Need to Know? Planned giving –Be the expert Legacy Giving –If not an expert, know where to ask –Don’t know the answer “May I get back to you by tomorrow?”

47. Staff Time Issues The “Two-fer” –Already meeting (whether or not in outright gift solicitation) –Five extra minutes

48. Who Do You Ask? Planned Giving –You don’t (with rare exceptions) Legacy Giving –Identified “suspects” (Kim Klein)

49. Identifying Suspects Those you know Build the list –Peer review of staff and key volunteers –“Who do you know?” after legacy asks

50. Identify Five Suspects Now Those whom you already know Who you can call or email for visit

51. Calling / Voicemail Leave message on first attempt 5-10 attempts in next two weeks Vary days, time of day Then second voicemail message Second round?

52. Contact Method Suspect’s preferred medium –Email –Calling –Letter –Combination

53. Voicemail Considerations Name Your phone number ( s l o w l y ) Brief message to meet “No need to call back …” “However if you wish to reach me, (repeat phone number slowly) …” Avoids phone tag Onus is on you, not them

54. Visit Questions What are our greatest strengths and weaknesses of? Why do you support us? Do you have any suggestions on what direction you would like us to move in over the next decade?

55. Visit Questions Continued What do you think are some of our long-term resource needs? One way an organization can strengthen its future resources is through legacy gifts. Would you consider including a legacy gift in your will or trust to help strengthen our long term needs?

56. Visit Questions Continued Could you suggest other supporters we might approach about making a legacy gift? May I get back to you in “x” months / years if we haven’t heard from you before then?”

57. Words to Use Cautiously / Avoid Planned Giving Estate Taxes-focused approach Bequest Charitable Gift Annuity Charitable Remainder Trust Charitable Lead Trust

58. Combined Solicitation Asks Dual Ask –Annual first –Legacy second Triple Ask (in campaign) –Campaign first –Annual second –Legacy last

59. Qualified Lead Letter & Enclosures "Yes" to legacy ask Cover letter Enclosures –Bequest language (or more specific) –Legacy society description

60. Qualified Lead Follow Up Call within 1 week "Any questions?" “If I haven’t heard back from you by (X weeks / months) may I call back then?“ Voicemail version (same content) Schedule on CRM software

61. More About Qualified Leads About half make a legacy gift … Eventually –In 1 month to 10 years or more –When the time is right for them Continue annual follow up for most Use stewardship event to cultivate

62. Confirmed Gift Letter/Enclosures Invitation to join legacy society Honoring rather than benefits Legacy society description Enrollment form

63. Securing Enrollment Form Half+ need follow up calls 90-95% success –Repeated calls –In person –Second+ form sent

64. Securing Enrollment Form 5% get phone call, memo to file –Details of name listing –Preference for “anonymous” listing

65. Tracking Moves (basic) Where in process –suspect –legacy ask (one time only) / result –qualified lead (source) –confirmed gift (type) –legacy society member

66. Next Step(s) in Tracking Data Data base or spreadsheet Formal moves management Major gifts integrated or separate? Drop down menu labels Better reports Others

67. Planned Giving Committees Historically advisors sole or dominant

68. Who Were We? Planned Giving ~10% full time Nonprofit Advisor 60% 40%

69. We’ve Changed Planned Giving Legacy Giving ~10% full time (remains constant) Nonprofit Advisor 60% 40% 85% 15%

70. Legacy Giving Committees Have made their own gift Identify suspects Cultivate and make legacy asks Provide stewardship Keep a program overview

71. Legacy Giving Committee Sub-committee of development You staff the effort –Script, letter templates –Regular contact –Reward success with praise –Mass email on: asks / leads / gifts success

72. Ambassadors Not willing to join committee Same tasks as committee member

73. First / Next Volunteer Candidates Already made a legacy gift Will make legacy ask

74. Moving on to Legacy Ask 201: Suspect Referrals Unknown to you Send third party referral letter Follow up phone call / voicemail message Be prepared for phone legacy ask "Would you consider joining our legacy society?"

75. Overall Measure of Success Legacy giving = organizational priority, not solely development office responsibility

76. Planned Giving Basic Measurements Irrevocable gifts “Amount certain” bequest commitments

77. Legacy Giving Basic Measurements “Suspects” pool size Qualified leads obtained by Communications / Marketing Legacy asks Total # New Commitments

78. Five Year Trend Measurements

79. A Growing Handful Routine triple ask –Harvard Law School Major Gift officer annual gift # goal –American Cancer Society –Stanford University –The Nature Conservancy –San Francisco Opera –Mills College

80. Changed Your Mind About Legacy Asks? What’s changed? Next step

81. National Data Bank # qualified leads # confirmed gifts $ matured gifts Selection options –FTE legacy giving –FTE development officers –Budget size –Sector

82. Additional resources Partnership for Philanthropic Planning –Journal of Gift Planning Northern CA Planned Giving Council –Basics Course; Primer Program; Annual Conference Fundamentals Track Planned Giving Today

83. Additional resources One textbook on Hand –Planned Giving: Management, Marketing and Law; Second Edition –The Complete Guide to Planned Giving; Revised Third Addition

84. Greg Lassonde, CFRE Legacy Giving Specialist / Consultant greg@greglassonde.com / (510) 483-1502 greglassonde.com